Ribbon Communications (RBBN) versus The Competition Financial Survey

Ribbon Communications (NASDAQ:RBBN) is one of 110 publicly-traded companies in the “Communications Equipment” industry, but how does it weigh in compared to its competitors? We will compare Ribbon Communications to related companies based on the strength of its institutional ownership, profitability, valuation, dividends, risk, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ribbon Communications and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ribbon Communications	1	1	4	0	2.50
Ribbon Communications Competitors	1066	4008	7057	376	2.54

Ribbon Communications presently has a consensus price target of $3.20, suggesting a potential upside of 121.45%. As a group, “Communications Equipment” companies have a potential upside of 31.15%. Given Ribbon Communications’ higher probable upside, research analysts plainly believe Ribbon Communications is more favorable than its competitors.

Earnings & Valuation

This table compares Ribbon Communications and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ribbon Communications	$797.64 million	N/A	18.06
Ribbon Communications Competitors	$874.11 million	$30.99 million	-0.81

Ribbon Communications’ competitors have higher revenue and earnings than Ribbon Communications. Ribbon Communications is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Ribbon Communications has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Ribbon Communications’ competitors have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Ribbon Communications and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ribbon Communications	N/A	N/A	N/A
Ribbon Communications Competitors	-6.98%	-24.84%	-3.02%

Insider & Institutional Ownership

70.9% of Ribbon Communications shares are owned by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are owned by institutional investors. 4.0% of Ribbon Communications shares are owned by insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Ribbon Communications beats its competitors on 8 of the 12 factors compared.

Ribbon Communications Company Profile

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications, and unified communications and collaboration. It also offers session border controllers; and network transformation products, such as signaling products, call controllers, media gateways, and application servers. This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. The IP Optical Networks segment provides hardware and software products and solutions for IP networking, switching, routing, and optical transport for technologies, such as 5G, distributed cloud computing, and corresponding applications. It also offers multiple solutions, including 5G-native solutions for mobile-backhaul, metro and edge aggregation, core networking, data center interconnect, multi-service access, and transport solutions for wholesale carriers. This segment serves utilities, government, defense, finance, transportation, and education and research industries, as well as service providers and enterprises. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Plano, Texas.